ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 5(1)(2), MUMBAI V. M/S. CREATIVE PERIPHERALS AND DISTRIBUTION LTD, MUMBAI

ITA 5382/MUM/2019

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 3476 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 6 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-03-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2009-2010
• Appeal Filed On: 19-08-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Bogus purchase; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL , C BENCH MUMBAI BEFORE : SHRI M.BALAGANESH, AM & SHRI RAVISH SOOD , JM ITA NO. 5382 /MUM/ 20 19 ( ASSESSMENT YEAR : 2009 - 10 ) ACIT - 5(1)(2), ROOM NO.568, AAYKAR BHAVAN M.K.ROAD, MUMBAI - 400020 VS. M/S. CREATIVE PERIPHERALS & DISTRIBUTION LTD., 20, 2 ND FLOOR, BABU BUILDING 375/377, LAMINTON ROAD GRANT ROAD(E), MUMBAI - 400 001 PAN/GIR NO. AACCC5396G (APPELLANT ) .. (RESPONDENT ) REVENUE BY MS. SHREEKALA PARDESHI ASSESSEE BY NONE DATE OF HEARING 02/03 /202 1 DATE OF PRONOUNCEMENT 02 / 03 /202 1 / O R D E R PER M. BALAGANESH (A.M) : THIS APPEAL IN ITA NO. 5382/MUM/2019 FOR A.Y. 2009 - 10 ARISES OUT OF THE ORDER BY THE LD. COMMISSIONER OF INCOME TAX (APPEALS) - 10, MUMBAI IN APPEAL NO. CIT(A ) - 10, MUMBAI/10112/2018 - 19 DATED 31/05/2019 (LD. CIT(A) IN SHORT) IN THE MATTER OF IMPOSITION OF PENALTY U/S.271(1)(C) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS ACT) . ITA NO . 5382/MUM/2019 M/S. CREATIVE PERIPHERALS AND DISTRIBUTION LTD., 2 2. THE LD. DR ARGUED VEHEMENTLY THAT THE PENALTY LEVIED BY THE LD. AO IN R ESPECT OF DISALLOWANCE MADE ON BOGUS PURCHASES. ACCORDINGLY, IN THE OPINION OF THE LD. DR, THE SAME WOULD FALL WITHIN THE EXCEPTION PROVIDED IN THE CBDT CIRCULAR NO.17/2019 DATED 08/08/2019. WE FIND THAT THE EXCEPTION PROVIDED IN THE SAID CIRCULAR DATED 08 /08/2019 ISSUED BY THE CBDT WOULD APPLY ONLY IN RESPECT OF QUANTUM ASSESSMENT PROCEEDING AND THE SAME CANNOT BE MADE APPLICABLE FOR PENALTY PROCEEDING AND IT IS WELL SETTLED THAT PENALTY PROCEEDING AND ASSESSMENT PROCEEDINGS ARE DISTINCT AND SEPARATE. IN V IEW OF THIS, WE ARE INCLINED TO TREAT THIS APPEAL AS NOT MAINTAINABLE IN VIEW OF THE CBDT CIRCULAR NO.17/2019 DATED 08/08/2019 TREATING IT AS AN APPEAL INVOLVING TAX EFFECT LESS THAN THE PRESCRIBED MONETARY LIMIT. 4 . IN THE RESULT, APPEAL FILED BY THE RE VENUE IS DISMISSED AS NOT MAINTAINABLE. ORDER PRONOUNCED IN OPEN COURT ON 02 / 03 /202 1 . SD/ - ( RAVISH SOOD ) SD/ - (M.BALAGANESH) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED 02 / 03 / 2021 KARUNA , SR.PS ITA NO . 5382/MUM/2019 M/S. CREATIVE PERIPHERALS AND DISTRIBUTION LTD., 3 COPY OF THE ORDER FORWARDED TO : BY ORDER, ( ASSTT. REGISTRAR) ITAT, MUMBAI 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A), MUMBAI. 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. //TRUE COPY//